The word of slack may sound negative to some of you. I also had the same opinions many years back. However, I no longer have such perception.
I feel that slack is important in life. This is applicable for one who has left the full-time employment. There is a need for some relaxing moment created by the slack. The slack will give some allowance for emergency incidents such as the travel and appointment (e.g dinner appointment with friends etc).
Time is much more enjoyable when every minute is not used. It gives one some variety rather than just mindlessly hopping from one attraction to another attraction. It gives tons of flexibility.
The biggest problem of not leaving a slack is how one unexpected event will cause a cascading effect. When one does not have wiggle room, none of the items in one’s schedule or budget can be moved or swapped without affecting other items. If one does not leave a slack, one may end up impacting not just one thing but possibly the entire budget or schedule. This may quickly lead to one freaking out and having a quasi-nervous breakdown on one’s part.
It makes sense to have fund sitting on the side-lines just in case rather than risk having a catastrophic chain of events happen that may blow up one’s finance. The said bucket 2 (Cash Cushion) is such example of fund.